Blog

The owner of Hilton Tours is considering installing a money purchase plan and integrating it with Social Security. Which of the following is true?

Alex Raul is reimbursed by his employer for expenses incurred in educating his two children. The reimbursement

What percentage of each annuity payment normally will be considered taxable income to a plan participant who has no cost basis in the plan?

An early distribution penalty can be assessed on Roth IRA withdrawals.

To comply with the pension plan reporting and disclosure rules under ERISA, employers must use the Annual Report to describe major provisions of the plan to plan participants in plain language.

If the plan covers only a single person and was individually negotiated, some courts have found that ERISA is not applicable.

Which of the following is not true about employee discounts?

The average age of employees at Baker Manufacturing is close to 30, and about two-thirds of current employees have children under age 10 at home. Most of these employees earn relatively low wages. The remaining employees have no dependent care needs. Baker Manufacturing is considering installing a dependent care assistance plan as an employee benefit. The advantages to Baker Manufacturing of doing so include which of the following?

Acorn Booksellers is a small business interested in adopting a qualified retirement plan. The owner of Acorn wants to be able to choose from more than one financial institution when implementing the plan. Acorn’s owner also wants to determine such things as the vesting schedule and the contribution or benefit formula. As a small business, Acorn wants to keep costs down. You recommend that Acorn use

Jay Casteel, age 29, ran a small water ski and jet ski rental shop in Gulf Shores. Unfortunately, near the end of the last season, a sudden storm with hurricane-force winds damaged or destroyed over half of his inventory. Revenues since the storm have been meager due to massive clean-up efforts and slower tourist trade. Jay is beginning to be pressured by some of his creditors. Jay has heard that the small Keogh fund that he started can be seized by his creditors if he cannot work out a repayment plan. You tell him that this is